MARKET SIZING ANALYSIS

The Revenue Catalyst: Data‑Driven Market
Sizing for Smarter Cannabis Lab Growth

In a focused Market Sizing initiative, a Florida-based cannabis testing laboratory used data‑driven demand modeling to sharpen commercial targeting, optimize capacity investments and unlock more profitable, scalable growth across the state

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The Challenge

Identifying Market Opportunities and
Driving Business Growth

Partial View of Florida
Cannabis Testing Demand

The client had a partial understanding of the testing universe in Florida, relying largely on orders from a handful of long-term partners. This meant they lacked visibility into emerging license holders, shifting volumes between medical and adult-use channels

Limited data on what will
drive the future

While the leadership believed that demand was growing, they did not have a structured view of which license types (cultivators, processors, dispensaries), and product formats (flower, concentrates, edibles, vapes) would drive future sample volumes

Lack of Competitor
Landscape Know-How

The client had limited awareness into how rival cannabis testing laboratories in Florida were structuring their test menus, turnaround times and pricing tiers, and lacked a robust, market-wide benchmarking view

The Roots Way

How Roots Helped?

The project focused on quantifying the total addressable market, identifying high-value customer segments and linking these insights to clear operational and commercial decisions.

Built a Market Sizing Model for Florida: The team combined license registry data, sales figures, regulatory testing requirements and product-mix assumptions to estimate the total addressable sample volume and revenue opportunity for cannabis testing across Florida over a ten-year horizon. We then added regulatory scenarios (e.g., potential adult-use legalization) to model optimistic / conservative cases as well, highlighting the impact of upcoming / ongoing regulatory trends on the overall market.

Delivered Actionable Volume Forecasts:As a next step, we segmented the market by license type, geography, product category and test panel (potency, contaminants, terpenes, stability, and R&D tests). This allowed the client to see exactly which regions and customer cohorts would generate high-margin volumes and how changes in product mix or regulation would shift the demand for specific tests.

Change We Created

Results You Can Quantify & Impact
Our Clients Can Count On

22%

Growth in High-Value Clients

By reaching out to top‑tier KOLs for specific study sites and involving them early in protocol refinement and site selection, the client reduced time for patient enrollment by around 25–30% in priority trials.

28%

More Sample Submissions

By concentrating BD efforts on the most active product developers, the client increased quarterly sample submissions from these key accounts by about 28%, while focusing on fewer but higher‑value relationships.

16%

Increase in Revenues

By introducing a simpler pricing structure tailored to different customer types, the client increased uptake of higher-value bundled assays and cut back on unplanned discounts, resulting in a 16% rise in revenue.